Climate change catastrophes and insuring decisions: A study in the presence of ambiguity

Sara le Roux

Journal of Economic Behavior & Organization, 2020, vol. 180, issue C, 992-1002

Abstract: This paper attempts to study how individuals respond to the availability of an insurance that would safeguard their interests if a climate change catastrophe occurred. If such an insurance is available to them, do individuals insure themselves sufficiently? Further, the study investigates if information regarding the past occurrence of the catastrophic event leads to an increase in insurance subscriptions and/or the emergence of a lemons market. Finally, policy implications are investigated - Can an indirect intervention in the form of a “nudge” ensure a better outcome?

Keywords: Climate change catastrophes; Insurance; Public goods; Uncertainty; Choquet expected utility; Strategic substitutes; Lemons market; Nudge (search for similar items in EconPapers)
JEL-codes: C71 C91 D03 D81 Q54 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:180:y:2020:i:c:p:992-1002

DOI: 10.1016/j.jebo.2018.07.021

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